Senate lowers curtain on incentives for film industry

LANSING – Without debate or discussion, the state Senate voted to end incentives for the film industry and phase out funding for the state’s film office.

There is $25 million for the incentives in the 2015-16 budget that begins on Oct. 1, but $19 million of that will be going toward paying off the state’s investment from pension funds in a struggling Pontiac film studio.

After Oct. 1, 2016, there will be no new money for incentives, but the film office can continue to operate to satisfy any existing contracts, which may last for another three years.

And while the Legislature can’t vote to close the film office, they can vote to stop funding for the office, which was created in Michigan in 1979. And once the incentive obligations are done, “the money remaining in the Michigan film promotion fund shall revert back to the general fund,” according to the language in the bill.

The Senate voted 24-13 to end the incentives with all the Democrats and Republican Sens. Jack Brandenburg of Harrison Township, Phil Pavlov of St. Clair and Tory Rocca of Sterling Heights opposing the bill.

It is expected to get concurrence in the House later today and move to Gov. Rick Snyder for his signature.

Sen. Arlan Meekhof, R-West Olive, has said that the Michigan Economic Development Corporation could assume the film office operations within their existing resources.

The film incentives first started in 2008 under former Gov. Jennifer Granholm and were revamped and capped under Snyder. The $50-million incentive got a $12-million cut earlier this year when the state had to deal with an unexpected $325-million hole in the budget due to businesses cashing in tax credits at a higher rate than expected.